Binance, the world’s largest cryptocurrency exchange, is facing tax evasion claims in India, with authorities demanding $86 million in unpaid taxes before allowing it to resume operations.
This is the first direct tax imposed on a crypto entity by the Indian government. Binance and other crypto projects were banned in January 2024 for non-compliance with regulations, but Binance announced plans to return in April.
On August 6, the Directorate General of Goods and Services Tax Intelligence (DGGI) demanded $86 million from Binance for allegedly avoiding Goods and Services Tax (GST). Binance reportedly earned Rs 4,000 crore from Indian customers, credited to a Seychelles-based company. Indian authorities contacted Binance offices but received no response.
India’s tax laws for crypto entities require a 1% tax deducted at source (TDS) on every transaction and a 30% tax on investment profits. Local exchanges comply, but international ones like Binance do not. Binance had previously tried to pay $2 million in fines to resume operations.
Similar taxes are expected to be imposed on other foreign crypto exchanges. Binance also faces tax evasion issues in Nigeria, where a staff member is imprisoned for tax evasion and money laundering. Binance operates in 150 countries, with over 90 million users and a 40% global market share
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